Euro Manganese Inc (ASX:EMN, TSX-V:EMN, OTCQX:EUMNF) has accelerated the structuring and procurement of project financing for its flagship Chvaletice Manganese Project in the Czech Republic with the appointment of Stifel Nicolaus Europe Limited, a wholly-owned subsidiary of Stifel Financial Corp, as project finance advisor.
EMN describes Stifel as a leading financial advisory group in the battery metals space, with the expertise to initiate dialogue between Euro Manganese and several potential financiers while also facilitating due diligence activities.
Stifel provides a suite of institutional services, including strategic business advisory across both debt and equity markets.
The major milestones needed to secure project financing include:
- completion of the feasibility study for the Chvaletice Manganese Project (expected in the coming weeks);
- execution of binding offtake agreements;
- finalising land access agreements; and
- approval of the Environmental and Social Impact Assessment (ESIA) and final permitting.
Euro Manganese expects to submit the ESIA to the Czech Ministry of the Environment in the third quarter of this year.
“Important step for the company”
“Stifel is a well-regarded capital solutions advisory firm with a successful track record of debt and equity raises,” Euro Manganese CEO and president Matthew James said.
“Euro Manganese stands to benefit from their significant experience in project financing and relationships with strategic partners in the European EV (electric vehicle) battery market.
“This appointment is an important step for the company as we seek to execute project milestones and move towards a final investment decision, expected in 2023.
“We look forward to working with the Stifel team to execute a successful financing package for the Chvaletice Manganese Project.”
Euro Manganese aims to supply manganese products to the European Union’s electric vehicle battery market from the Chvaletice Project.
The project is a remediation opportunity that involves reprocessing old tailings from a decommissioned mine to produce high-purity manganese products.
“Fully traceable and sought-after product”
“Euro Manganese is uniquely positioned to capitalise on the growth in the European electric vehicle market,” Stifel head of capital solutions group Jan-Erik Back said.
“Having the only sizable manganese resource in Europe combined with the development of a processing plant to produce high-purity manganese products, they will have a fully traceable and sought-after product for the EV industry.
“Moreover, as the Chvaletice project involves reprocessing and rehabilitating historic mine tailings, the environmental credentials of the project should be very compelling for financiers.
“Stifel is proud to partner with Euro Manganese to help advance this critical battery materials project.”